Judicial Decision Confirms AEDT’s Position on VAT Deduction and Partial Taxpayer Qualification

The recent judicial decision n°2024TALCH14/00058 from the 14th Chamber confirms the AEDT’s position on two key issues:
a) The right to deduct VAT on general expenses requires specific conditions to be met, including a direct and immediate link between the costs and the taxable economic activity. Inadequate documentation will not suffice.
b) Individuals holding shares in subsidiaries without involvement in management are automatically classified as “partial taxpayers” according to the tribunal, aligning with the AEDT’s stance. This reinforces the limited right to input VAT deduction.

Source Gilles Barbabianca

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